Mary Barra, CEO, GM at the NYSE, November 17, 2022.
Source: NYSE
DETROIT — common engine is set to report fourth-quarter earnings before the third bell. Here’s what Wall Street is expecting, according to Refinitiv consensus estimates:
- Adjusted earnings per share: $1.69
- Revenue: 40.65 billion USD
November GM tightened the projected range for adjusted earnings in 2022 to $13.5 billion to $14.5 billion, compared with the previous guidance of $13 billion to $15 billion. It also increases cash flow guidance from $10 billion to $11 billion, up from $7 billion to $9 billion.
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While investors will be watching fourth-quarter results for signs of any weakening consumer demand or profit dilutionThe automaker’s 2023 guidance is expected to be in the spotlight.
Goldman Sachs said it expects GM’s forecast to be below consensus, “due to lower prices and combinations as well as financial services profits.” According to Refinitiv estimates, the automaker is expected to head towards a roughly 20% decline in adjusted earnings per share for the full year of 2023.
Automakers have posted record results in recent years amid a tight supply of new vehicles and a recovery in consumer demand. They have considered maintaining pent-up need when inventory levels adjust, in the hope of avoiding sharp price cuts or encouraging car sales.
But that scenario is gradually normalizing, leaving the new medium Prices and profits change constantly.
For Q4 2021, GM reported adjusted EPS of $1.35 and revenue of $33.58 billion, higher than Wall Street’s EPS estimate of $1.19 per share but low more than revenue estimates of $34.01 billion, according to Refinitiv.
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